UC Davis Health and Sacramento County Reach Settlement Agreement over Payment for Health Care Services to County Indigent and Jail Inmates

UC Davis Health and the County of Sacramento have mutually agreed to a resolution of the University’s pending lawsuit against the County. The settlement ends lengthy litigation concerning the County’s payment obligations to UC Davis Health for emergency and specialty medical care provided to the County indigent patients and jail inmates over a multi-year period stemming back to the 2008 recession.

The resolution, reached during a court-supervised settlement conference, calls for the County to make a payment of approximately $98 million plus interest over a 15 year period to reimburse for health care services provided by UC Davis Health from July 2008 to December 2015.

“We thank the County of Sacramento for working with us to reach an agreement and remain committed to working collaboratively with the County to care for patients in this region,” said UC Davis Chancellor Gary S. May. “UC Davis is a major leader in providing a broad range of health care options, conducting critical research, and teaching the next generation of medical practitioners. Our goal, as always, is to improve the health of our community, and the funds will be used to advance the overall quality and excellence of UC Davis and further enhance the health and public services we provide to our region.”

Board of Supervisors Chairman Don Nottoli, speaking on Sacramento County’s behalf, said, “We recognize the importance of the longstanding and ongoing relationship between UC Davis and the County of Sacramento. Maintaining an array of critical health services such as medical, specialty and correctional psychiatric services is vitally important for those in the Sacramento region. Sacramento County remains committed to its partnership with UC Davis Health and looks forward to our continued work to improve the health of people throughout the Sacramento community.”

The County appreciates UC Davis Health for caring for County indigent and jail inmates throughout what was a financially difficult time for the County. UC Davis agreed to structure this agreement over multiple budget cycles to address the County’s concern to both meet its financial obligation to UC Davis and preserve existing County programs and services.

Throughout the litigation, UC Davis and the County maintained their working relationship on behalf of patients, providing numerous health care services to the community, including mental health services at the County Jail, specialty services at the County Primary Care Clinic, and disaster preparedness drill and planning.